ENG-1997 — Page 159

TRADE AND INDUSTRY

Intellectual Property

The department is responsible for enforcing the protection of intellectual property rights including copyright and trademarks. It investigates complaints and takes action against the manufacture and sale of counterfeit products. Close contact is maintained with the owners of intellectual property rights whose products are commonly pirated.

The new Copyright Ordinance came into force on June 27, 1997. It gives Customs officers additional powers to seize and declare forfeit suspected pirated articles. The ordinance makes it easier than in the past to prosecute offenders and to enlist the co- operation of overseas enforcement agencies and the intellectual property rights holders.

With an increase in manpower during the year and additional powers under the new ordinance, the department was able to develop more intelligence on the import and distribution of pirated goods. Large-scale operations were carried out on shops and on-street hawkers selling pirated CD products. As a result of stepped up enforcement, pirated goods valued at $185.46 million were seized and i 564 people arrested for intellectual property offences. Counterfeit and falsely labelled goods valued at $195.2 million were seized and 1 114 people prosecuted under the Trade Descriptions Ordinance. Stiffer penalties were imposed by the courts and 329 persons were jailed for copyright and trademark offences.

World Customs Organisation

Hong Kong remains a separate Customs territory and an active member of the World Customs Organisation (WCO) under the name of 'Hong Kong, China'. The WCO aims to facilitate international trade by achieving harmony and uniformity in customs systems and procedures world-wide, through inter-governmental co-operation.

The department continues to host the WCO's Regional Intelligence Liaison Office for the Economic and Social Commission for Asia and the Pacific region.

Trade in Endangered Species

Imports, exports and possession of endangered species are regulated by the Animals and Plants (Protection of Endangered Species) Ordinance, which gives effect to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Licensing policy follows the CITES principles closely. Commercial imports and exports of highly endangered species are prohibited, and trade in less-endangered species is subject to licensing requirements.

The ordinance is administered by the Agriculture and Fisheries Department, and enforced by the department and the Customs and Excise Department through checking at entry points, markets, shops and restaurants. All suspected offences are investigated and prosecutions are instituted if there is evidence of a breach. The ordinance provides for penalties ranging up to a maximum fine of $5 million and imprisonment for two years.

Intellectual Property

The Intellectual Property Department consists of the Trade Marks, Patents and Designs Registries and a legislation policy division. The department is responsible for legislation to protect intellectual property in Hong Kong. During the year, the

107